Mohawk Industries, Inc. (NYSE:MHK) Q3 2024 Earnings Conference Call October 25, 2024 11:00 AM ET

Company Participants

James Brunk - CFO
Jeffrey Lorberbaum - Chairman & CEO
Christopher Wellborn - President, COO & Director

Conference Call Participants

Timothy Wojs - Baird
John Lovallo - UBS
Susan Maklari - Goldman Sachs
Matthew Bouley - Barclays
Phil Ng - Jefferies
Laura Champine - Loop Capital
Keith Hughes - Truist Securities
Andrew Azzi - JPMorgan
Adam Baumgarten - Zelman & Associates
Eric Bosshard - Cleveland Research
Stephen Kim - Evercore ISI
Trevor Allinson - Wolf Research
Samuel Reid - Wells Fargo

Operator

Good day, and welcome to the Mohawk Industries Third Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to hand the call to James Brunk. Please go ahead.

James Brunk

Thank you, Andrea. Good morning. Welcome to Mohawk Industries quarterly investor conference call. Joining me on today's call are Jeff Lorberbaum, Chairman and Chief Executive Officer; and Chris Wellborn, President and Chief Operating Officer. Today, we'll update you on the company's third quarter performance and provide guidance for the fourth quarter of 2024.

I'd like to remind everyone that our press release and statements that we make during this call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, which are subject to various risks and uncertainties, including, but not limited to, those set forth in our press release and our periodic filings with the Securities and Exchange Commission.

This call may include discussion of non-GAAP numbers. For a reconciliation of any non-GAAP to GAAP amounts, please refer to our Form 8-K and press release in the Investors section of our website.

With that, I'll turn the call over to Jeff.

Jeffrey Lorberbaum

Thanks, Jim. Good morning, everyone. We delivered a solid third quarter performance and soft market conditions with earnings per share of $2.90, an increase of approximately 7%, which reflects the positive impact of our sales initiatives, productivity and restructuring actions and lower input costs, partially offset by pricing and mix pressure.

Our net sales for the quarter were $2.7 billion, down approximately 2% compared to last year. Due to our increased earnings and management of working capital, we generated free cash flow of approximately $204 million in the quarter for a total of approximately $443 million year-to-date. This year, we're investing approximately $450 million in capital projects that are focused on growth, reducing cost and asset maintenance.